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Ongoing Impact of the Recession—State and Local Government June 4, 2012
2.
The Ongoing Impact
of the Recession: State and Local Government Introduction Key Findings Organizations’ Financial Health Hiring Recruiting Challenges Demographics Methodology SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 2
3.
Introduction Overall results
have been released in three different topic areas: Recruiting and skill gaps (released November 7, 2011). Overall financial health and hiring (released November 22, 2011). Global competition and hiring strategies (released December 14, 2011). Industry-specific results are reported separately for each of the eight industries included in the sample. These findings cover the results for the state and local government. The following industries were also included in the sample: Construction, mining, oil and gas (released March 9, 2012). Manufacturing (released April 4, 2012). Finance (released June 4, 2012). Federal government (released June 4, 2012). Health. Services—professional. High-tech. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 3
4.
Key Findings: Organizations’
Financial Health State and Local Government What percentage of staff have organizations laid off since the U.S. and global recession began in December 2007? Thirty percent of respondents from state and local governments had not laid off any staff in 2011. More than one-third (37%) laid off 1% to 5% of staff, and another 18% lost between 6% and 10% of staff. Overall, the majority (85%) of respondents from state and local governments indicated they had lost 10% of employees or less in 2011. This percentage is similar to 2010, when 81% of these organizations reported losing less than 10% of employees since the beginning of the recession. How does organizations’ financial health compare to 12 months ago? While close to one-half (45%) of state and local governments reported being in either a mild or significant decline compared with one year ago, one-quarter (25%) were in a mild recovery, an increase from 11% in 2010. Slightly more than one-quarter (29%) reported no change in the past year. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 4
5.
Key Findings: Hiring State
and Local Government Are organizations hiring? Three-quarters (75%) of respondents from state and local governments were hiring—an increase from 60% in 2010. The majority (80%) of those who are hiring are recruiting nonmanagement hourly employees, and two- thirds (66%) are hiring nonmanagement salaried employees. Just over one-half (54%) are hiring other management-level employees, and about one-quarter (28%) are hiring executive or upper management staff. Are organizations creating new positions or replacing jobs lost? In 2011, the majority (80%) of state and local governments were hiring direct replacements of jobs lost since the recession began, an increase of 19 percentage points compared with 2010 (61%). Fewer organizations were hiring for completely new positions in 2011 (12%) than in 2010 (28%). SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 5
6.
Key Findings: Recruiting
Challenges State and Local Government Is recruiting for specific jobs difficult in the current labor market? Among state and local governments that are currently hiring full-time staff, about one-third (34%) of respondents indicated that they are having difficulty recruiting for specific open jobs. When recruiting for jobs that require new and different skill sets, it has become more difficult to find qualified individuals for these positions in 2011 compared with 2010. In 2011, about one-half (52%) of state and local governments were finding it very or somewhat easy to find qualified individuals compared with 65% in 2010. The other half (48%) in 2011 were finding it somewhat difficult to find qualified applicants, an increase from 35% in 2010. What types of jobs are the most difficult to fill? The top five most difficult positions to fill for state and local governments are high-skilled technical positions (e.g., technicians and programmers) (88%), high-skilled medical (e.g., nurses, doctors and specialists) (85%), engineers (83%), scientists (80%), and managers and executives (71%). SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 6
7.
The Ongoing Impact
of the Recession: State and Local Government Organizations’ Financial Health SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 7
8.
Thus far, what
percentage of full-time jobs have been lost at your organization since the U.S. and global recession began in December 2007? State and Local Government Not applicable—did not lay off any 30% 2011 (n = 432) staff 2010 (n = 454) 37% 85% 1% to 5% of staff 18% 6% to 10% of staff 10% or less (2011 data) 85% *Less than 10% (2010 data) 81% 11% to 20% of staff (2011 data) 11% * 10% to 20% (2010 data) 17% 3% 21% to 50% of staff 2% 0% More than 50% of staff 0% Note: Percentages may not total 100% due to rounding. An asterisk (*) indicates 2010 data had different categories than 2011 data: “Less than 10% of staff” and “10% to 20% of staff.” SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 8
9.
Thus far, what
percentage of full-time jobs have been lost at your organization since the U.S. and global recession began in December 2007? State and Local Government Comparisons by industry The federal government and the finance industry are more likely to have had no layoffs compared with the construction, mining, oil and gas; manufacturing; state and local government; professional services; and high-tech industries. Construction, mining, oil and gas (20%) …are more likely to Manufacturing (21%) Federal government (50%) have had NO layoffs State and local government (30%) Finance (45%) than... Services—professional (30%) High-tech (29%) The construction, mining, oil and gas; manufacturing; professional services, and high-tech industries are more likely to have lost 21% to 50% of staff compared with state and local governments. Construction, mining, oil and gas (17%) …are more likely to Manufacturing (14%) have lost 21% to 50% of staff State and local government (3%) Services—professional (10%) than... High-tech (9%) Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 9
10.
In relation to
the U.S. and global recession, would you say your organization's overall financial health is declining or recovering compared with 12 months ago? State and Local Government 1% 2011 (n = 431) In a significant recovery 1% 2010 (n = 451) 25% In a mild recovery 11% 29% No change compared with 12 months ago 25% 32% In a mild decline 41% 13% In a significant decline 22% SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 10
11.
In relation to
the U.S. and global recession, would you say your organization's overall financial health is declining or recovering compared with 12 months ago? State and Local Government Comparisons by industry The construction, mining, oil and gas; finance; manufacturing; professional services; and high-tech industries are more likely to be in a significant recovery compared with the state and local government. Construction, mining, oil and gas (9%) Finance (11%) …are more likely to Manufacturing (19%) be in a significant recovery State and local government (1%) Services—professional (10%) than... High-tech (14%) The federal government is more likely to be in a significant decline compared with the construction, mining, oil and gas; finance; health; manufacturing; state and local government; professional services; and high-tech industries. Construction, mining, oil and gas (7%) Finance (3%) …is more likely to Health (10%) Federal government (29%) be in a significant decline Manufacturing (4%) than... State and local government (13%) Services—professional (5%) High-tech (4%) Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 11
12.
The Ongoing Impact
of the Recession: State and Local Government Hiring SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 12
13.
Is your organization
currently hiring full-time staff? State and Local Government 75% Yes 60% 2011 (n = 432) 2010 (n = 448) 25% No 40% SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 13
14.
At what level(s)
is your organization hiring? State and Local Government Nonmanagement hourly employees 80% Nonmanagement salaried employees 66% Other management (e.g., directors, managers) 54% Executive/upper management (e.g., CEO, CFO) 28% Note: n = 319. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were currently hiring full-time staff were asked this question. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 14
15.
At what level(s)
is your organization hiring? State and Local Government Comparisons by industry The federal government, health industry, and state and local governments are more likely to be hiring executive/upper management employees compared with the construction, mining, oil and gas industry. …are more likely to Federal government (39%) be hiring executive/upper Health (39%) Construction, mining, oil and gas (15%) management employees State and local government (28%) than... The professional services and high-tech industries are more likely to be hiring nonmanagement salaried employees compared with the state and local governments. …are more likely to Services—professional (78%) be hiring nonmanagement salaried State and local government (66%) High-tech (91%) employees than... Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 15
16.
At what level(s)
is your organization hiring? (Continued) State and Local Government Comparisons by industry The finance, health, manufacturing, and state and local government industries are more likely to be hiring nonmanagement hourly employees compared with the federal government, professional services and high-tech industries. Finance (77%) …are more likely to Federal government (53%) Health (89%) be hiring non-management hourly Services—professional (60%) Manufacturing (84%) employees High-tech (51%) State and local government (80%) than... Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 16
17.
Which of the
following best describes, in general, the nature of full-time positions your organization is currently hiring? State and Local Government 12% Completely new positions 28% 8% New duties added to jobs lost (e.g., due to 2011 (n = 316) layoffs, attrition) since the recession began 2010 (n = 250) 11% 80% Direct replacements of jobs lost (e.g., due to layoffs, attrition) since the recession began 61% Note: Only respondents whose organizations were currently hiring full-time staff were asked this question. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 17
18.
Which of the
following best describes, in general, the nature of full-time positions your organization is currently hiring? State and Local Government Comparisons by industry The state and local government is more likely to be hiring direct replacements of jobs lost since the recession began compared with the construction, mining, oil and gas; finance; manufacturing; professional services; and high-tech industries. Construction, mining, oil and gas (49%) …is more likely to Finance (60%) be hiring direct replacements of jobs State and local government (80%) Manufacturing (54%) lost since the recession began Services—professional (47%) than... High-tech (39%) The construction, mining, oil and gas; finance; manufacturing; professional services; and high-tech industries are more likely to be hiring for completely new positions compared with the state and local governments. Construction, mining, oil and gas (38%) …are more likely to Finance (29%) be hiring for completely new Manufacturing (32%) State and local government (12%) positions Services—professional (39%) than... High-tech (46%) Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 18
19.
Compared with the
skills required for jobs lost since the recession began, do these completely new positions require any of the following skills? State and Local Government A mixture of new skills and the same 49% types of skills Approximately the same types of 43% skills Completely new and different skills 9% Note: n = 35. Percentages do not total 100% due to rounding. Only respondents whose organizations were hiring full-time staff for “completely new positions” were asked this question. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 19
20.
The Ongoing Impact
of the Recession: State and Local Government Recruiting Challenges SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 20
21.
If the new
jobs being created by your organization require new and different skill sets, how easy do you think it will be—or has been thus far—to find qualified individuals for those positions? State and Local Government 9% Very easy 2011 (n = 44) 20% 2010 (n = 86) 43% Somewhat easy 45% 48% Somewhat difficult 35% 0% Very difficult 0% Note: This question was asked only of respondents whose organizations were hiring full-time staff for positions with “new duties added to jobs lost” or “completely new positions” (see slide 17) that required either “a mixture of new skills and the same types of skills” or “completely new and different skills” (see slide 19). SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 21
22.
In general, in
the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? State and Local Government Yes, 34% No, 66% Note: n = 302. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were currently hiring full- time staff were asked this question. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 22
23.
In general, in
the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? State and Local Government Comparisons by industry The construction, mining, oil and gas; finance; manufacturing; professional services; and high-tech industries are more likely to be having difficulty recruiting for specific jobs compared with the state and local governments. Construction, mining, oil and gas (51%) …are more likely to Finance (49%) be having difficulty recruiting for Manufacturing (68%) specific jobs that are open in their State and local government (34%) Services—professional (57%) organization High-tech (71%) than... Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 23
24.
Do you believe
that your organization is facing global competition (i.e., competition from other countries) for jobs that your organization is having difficulty filling? State and Local Government Yes, 4% No, 96% Note: n = 96. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 24
25.
Do you believe
that your organization is facing global competition (i.e., competition from other countries) for jobs that your organization is having difficulty filling? State and Local Government Comparisons by industry The construction, mining, oil and gas; federal government; health; manufacturing; professional services; and high-tech industries are more likely to believe that their organization is facing global competition compared with the state and local governments. Construction, mining, oil and gas (34%) Federal government (28%) …are more likely to Health (27%) believe that their organization is State and local government (4%) Manufacturing (27%) facing global competition Services—professional (21%) than... High-tech (42%) Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 25
26.
Has your organization
hired any workers from outside the U.S. in an attempt to fill key jobs that have been difficult to fill? State and Local Government Yes 11% No 88% No, but we are considering it 1% No, but we have plans to do 0% so in the next 12 months Note: n = 94. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 26
27.
Has your organization
hired any workers from outside the U.S. in an attempt to fill key jobs that have been difficult to fill? State and Local Government Comparisons by industry The construction, mining, oil and gas, and high-tech industries are more likely to have hired workers from outside the U.S. in an attempt to fill hard-to-fill jobs compared with state and local governments. …are more likely to Construction, mining, oil and gas (31%) have hired workers from outside the U.S. State and local government (11%) High-tech (50%) than... Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 27
28.
Has your organization
hired any U.S. veterans in an attempt to fill key jobs that have been difficult to fill? State and Local Government Yes 37% No 54% No, but we are considering 6% it No, but we have plans to do 3% so in the next 12 months Note: n = 67. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 28
29.
Has your organization
hired any U.S. veterans in an attempt to fill key jobs that have been difficult to fill? State and Local Government Comparisons by industry The federal government is more likely to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs compared with the construction, mining, oil and gas; finance; health; manufacturing; state and local government; professional services; and high-tech industries. Construction, mining, oil and gas (50%) Finance (13%) …is more likely to Health (42%) Federal government (96%) have hired U.S. veterans Manufacturing (44%) than... State and local government (37%) Services—professional (38%) High-tech (34%) The construction, mining, oil and gas; health; manufacturing; state and local government; professional services; and high-tech industries are more likely to have hired U.S. veterans in an attempt to fill hard-to-fill jobs compared with the finance industry. Construction, mining, oil and gas (50%) Health (42%) …are more likely to Manufacturing (44%) have hired U.S. veterans Finance (13%) State and local government (37%) than... Services—professional (38%) High-tech (34%) Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 29
30.
In general, what
basic skill/knowledge gaps do job applicants have in your industry? State and Local Government Writing in English (grammar, spelling, etc.) 56% Government/economics 41% Mathematics (computation) 24% Reading comprehension (in English) 24% English language (spoken) 22% Science 8% Foreign languages 6% Humanities/arts 4% History/geography 4% Technical (computer, engineering, mechanical, etc.) 1% Other 6% Note: n = 78. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 30
31.
In general, what
applied skill gaps do job applicants have in your industry? State and Local Government Critical thinking/problem solving 53% Professionalism/work ethic 49% Written communications 46% Leadership 43% Oral communications 36% Teamwork/collaboration 33% Ethics/social responsibility 26% Information technology application 26% Lifelong learning/self-direction 26% Creativity/innovation 24% Diversity 20% Other 10% Note: n = 90. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 31
32.
Specific Job Categories
Organizations Having Difficulty Recruiting State and Local Government High-skilled technical (e.g., technicians, programmers) (n = 72) 88% High-skilled medical (e.g., nurses, doctors, specialists) (n = 32) 85% Engineers (n = 53) 83% Scientists (n = 20) 80% Managers and executives (n = 80) 71% Skilled trades (e.g., electricians, carpenters) (n = 51) 61% Accounting and finance professionals (n = 72) 56% HR professionals (n = 61) 46% Drivers (n = 36) 28% Hourly laborers (n = 65) 21% Administrative support staff (n = 92) 16% Customer service representatives (n = 68) 14% Note: Chart represents “somewhat difficult” and “very difficult” responses. “Not applicable” responses were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. No statistics are provided for job categories where the n is less than 20; therefore, the job categories of “production operators” (n = 19) and “sales representatives” (n = 8) were excluded from this analysis. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 32
33.
The Ongoing Impact
of the Recession: State and Local Government Demographics SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 33
34.
Demographics: Organization Staff
Size State and Local Government 1 to 99 employees 13% 100 to 499 employees 34% 500 to 2,499 employees 30% 2,500 to 24,999 employees 21% 25,000 or more employees 3% Note: n = 405. Percentages do not total 100% due to rounding. SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 34
35.
Demographics: Other State and
Local Government Does your organization have U.S.- Is your organization a single-unit organization based operations (business units) only or a multi-unit organization? or does it operate multinationally? Single-unit organization: An organization in which the location and the 63% U.S.-based operations only 100% organization are one and the same Multi-unit organization: An organization Multinational operations 0% 37% that has more than one location n = 417 n = 418 Are HR policies and practices determined by the What is the HR department/function multi-unit corporate headquarters, by each work you responded for throughout this location or both? survey? Multi-unit headquarters determines HR policies 55% and practices Corporate (companywide) 76% Each work location determines HR policies and Business unit/division 16% 1% practices Facility/location 8% A combination of both the work location and the multi-unit headquarters determine HR policies 44% n = 153 and practices n = 151 SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 35
36.
SHRM Poll: The
Ongoing Impact of the Recession: State and Local Government Methodology Response rate = 15% Sample composed of 432 randomly selected HR professionals from state and local governments in SHRM’s membership Margin of error +/-5% Survey fielded August 18-September 2, 2011 For more poll findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research Project leader: Tanya A. Mulvey, survey research analyst, SHRM Research Project contributors: Mark Schmit, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, SHRM Survey Research Center Copy editor: SHRM Poll: The Ongoing Impact of the Recession—State and Local Government ©SHRM 2012 Katya Scanlan, SHRM Knowledge Integration 36
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